f. Fair Value of Financial Instruments
The following table compares the carrying values of financial instruments with their fair values:
2007
| (in TEUR) | At amortized costs | Fair value not through profit or loss | Fair value through profit or loss | Carrying value 31.12.2007 | Market value 31.12.2007 | |||||
| ASSETS | ||||||||||
| Investments | ||||||||||
| Available for sale | 6,840 | 62 | 0 | 6,902 | 6,902 | |||||
| Loans and receivables | 26,095 | 0 | 0 | 26,095 | 26,095 | |||||
| Receivables and other assets | ||||||||||
| Loans and receivables | 519,338 | 0 | 0 | 519,338 | 519,338 | |||||
| Held for trading | 0 | 0 | 19,762 | 19,762 | 19,762 | |||||
| Marketable securities | ||||||||||
| Available for sale | 101,041 | 846 | 0 | 101,887 | 101,887 | |||||
| Cash and cash equivalents | ||||||||||
| Loans and receivables | 496,926 | 0 | 0 | 496,926 | 496,926 | |||||
| 1,150,240 | 908 | 19,762 | 1,170,910 | 1,170,910 | ||||||
| LIABILITIES | ||||||||||
| Financial liabilities | ||||||||||
| Measured at amortized costs | 350,998 | 0 | 0 | 350,998 | 350,998 | |||||
| Not allocated to any IAS valuation category | 1,350 | 0 | 1,350 | 1,350 | ||||||
| Trade accounts payable | ||||||||||
| Measured at amortized costs | 314,028 | 0 | 0 | 314,028 | 314,028 | |||||
| Other liabilities | ||||||||||
| Held for trading | 0 | 0 | 19,897 | 19,897 | 19,897 | |||||
| Measured at amortized costs | 354,798 | 0 | 0 | 354,798 | 354,798 | |||||
| 1,021,174 | 0 | 19,897 | 1,041,071 | 1,041,071 |
Carryingvalue marketvalue financialinstruments (Download size 30 KB)
2006*
| (in TEUR) | At amortized costs | Fair value not through profit or loss | Fair value through profit or loss | Carrying value 31.12.2006 | Market value 31.12.2006 | |||||
| ASSETS | ||||||||||
| Investments | ||||||||||
| Available for sale | 10,437 | (54) | 0 | 10,383 | 10,383 | |||||
| Loans and receivables | 22,355 | 0 | 0 | 22,355 | 22,355 | |||||
| Receivables and other assets | ||||||||||
| Loans and receivables | 444,677 | 0 | 0 | 444,677 | 444,677 | |||||
| Held for trading | 0 | 0 | 15,772 | 15,772 | 15,772 | |||||
| Marketable securities | ||||||||||
| Available for sale | 38,668 | 924 | 0 | 39,592 | 39,592 | |||||
| Cash and cash equivalents | ||||||||||
| Loans and receivables | 670,591 | 0 | 0 | 670,591 | 670,591 | |||||
| 1,186,728 | 870 | 15,772 | 1,203,370 | 1,203,370 | ||||||
| LIABILITIES | ||||||||||
| Financial liabilities | ||||||||||
| Measured at amortized costs | 343,084 | 0 | 0 | 343,084 | 343,084 | |||||
| Not allocated to any IAS valuation category | 1,377 | 0 | 0 | 1,377 | 1,377 | |||||
| Trade accounts payable | ||||||||||
| Measured at amortized costs | 340,682 | 0 | 0 | 340,682 | 340,682 | |||||
| Other liabilities | ||||||||||
| Held for trading | 0 | 0 | 16,217 | 16,217 | 16,217 | |||||
| Measured at amortized costs | 318,696 | 0 | 0 | 318,696 | 318,696 | |||||
| 1,003,839 | 0 | 16,217 | 1,020,056 | 1,020,056 |
Carryingvalue marketvalue financialinstruments-py (Download size 30 KB)
*restated
The following table shows the transition from the carrying values of financial instruments to the IAS 39 reserve:
2007
| (in TEUR) | Amortized costs | Fair value not through profit or loss | Fair value through profit or loss | Carrying value 31.12.2007 | Market value 31.12.2007 | |||||
| ASSETS | ||||||||||
| Held for trading | ||||||||||
| Derivatives | 0 | 0 | 18,029 | 18,029 | 18,029 | |||||
| Embedded derivatives | 0 | 0 | 1,733 | 1,733 | 1,733 | |||||
| Available for sale | ||||||||||
| Non-current securities | 6,840 | 62 | 0 | 6,902 | 6,902 | |||||
| Marketable securities | 101,041 | 846 | 0 | 101,887 | 101,887 | |||||
| Loans and receivables | ||||||||||
| Loans granted | 14,611 | 0 | 0 | 14,611 | 14,611 | |||||
| Investments in other companies | 11,484 | 0 | 0 | 11,484 | 11,484 | |||||
| Non - current receivables and other non - current assets | 10,221 | 0 | 0 | 10,221 | 10,221 | |||||
| Trade accounts receivable | 400,163 | 0 | 0 | 400,163 | 400,163 | |||||
| Other receivables and assets - current | 108,954 | 0 | 0 | 108,954 | 108,954 | |||||
| Cash and cash equivalents | 496,926 | 0 | 0 | 496,926 | 496,926 | |||||
| 1,150,240 | 908 | 19,762 | 1,170,910 | 1,170,910 | ||||||
| LIABILITIES | ||||||||||
| Held for Trading | ||||||||||
| Derivatives | 0 | 0 | 14,638 | 14,638 | 14,638 | |||||
| Embedded derivatives | 0 | 0 | 5,259 | 5,259 | 5,259 | |||||
| Financial liabilities measured at amortized costs | ||||||||||
| Bonds | 292,263 | 0 | 0 | 292,263 | 292,263 | |||||
| Bank loans and other financial liabilities | 58,735 | 0 | 0 | 58,735 | 58,735 | |||||
| Trade accounts payable | 314,028 | 0 | 0 | 314,028 | 314,028 | |||||
| Other liabilities | 354,798 | 0 | 0 | 354,798 | 354,798 | |||||
| 0 | 0 | |||||||||
| Other liabilities, not allocated to any IAS 39 | 0 | 0 | ||||||||
| valuation category | 0 | 0 | ||||||||
| Obligations under finance leases | 1,350 | 0 | 0 | 1,350 | 1,350 | |||||
| 1,021,174 | 0 | 19,897 | 1,041,071 | 1,041,071 | ||||||
Reconciliation valuationcategories financialinstruments (Download size 34 KB)
2006*
| (in TEUR) | Amortized costs | Fair value not through profit or loss | Fair value through profit or loss | Carrying value 31.12.2006 | Market value 31.12.2006 | |||||
| ASSETS | ||||||||||
| Held for trading | ||||||||||
| Derivatives | 0 | 0 | 15,039 | 15,039 | 15,039 | |||||
| Embedded derivatives | 0 | 0 | 733 | 733 | 733 | |||||
| Available for sale | ||||||||||
| Non-current securities | 10,437 | (54) | 0 | 10,383 | 10,383 | |||||
| Marketable securities | 38,668 | 924 | 0 | 39,592 | 39,592 | |||||
| Loans and receivables | ||||||||||
| Loans granted | 14,003 | 0 | 0 | 14,003 | 14,003 | |||||
| Investments in other companies | 8,352 | 0 | 0 | 8,352 | 8,352 | |||||
| Non - current receivables and other non - current assets | 6,132 | 0 | 0 | 6,132 | 6,132 | |||||
| Trade accounts receivable | 347,368 | 0 | 0 | 347,368 | 347,368 | |||||
| Other receivables and assets - current | 91,177 | 0 | 0 | 91,177 | 91,177 | |||||
| Cash and cash equivalents | 670,591 | 0 | 0 | 670,591 | 670,591 | |||||
| 1,186,728 | 870 | 15,772 | 1,203,370 | 1,203,370 | ||||||
| LIABILITIES | ||||||||||
| Held for Trading | ||||||||||
| Derivatives | 0 | 0 | 6,421 | 6,421 | 6,421 | |||||
| Embedded derivatives | 0 | 0 | 9,796 | 9,796 | 9,796 | |||||
| Financial liabilities measured at amortized costs | ||||||||||
| Bonds | 296,358 | 0 | 0 | 296,358 | 296,358 | |||||
| Bank loans and other financial liabilities | 46,726 | 0 | 0 | 46,726 | 46,726 | |||||
| Trade accounts payable | 340,682 | 0 | 0 | 340,682 | 340,682 | |||||
| Other liabilities | 318,696 | 0 | 0 | 318,696 | 318,696 | |||||
| Other liabilities, not allocated to any IAS 39 | ||||||||||
| valuation category | ||||||||||
| Obligations under finance leases | 1,377 | 0 | 0 | 1,377 | 1,377 | |||||
| 1,003,839 | 0 | 16,217 | 1,020,056 | 1,020,056 | ||||||
Reconciliation valuationcategories financialinstruments-py (Download size 26 KB)
*restated
Fair value calculation
The fair value of forward foreign exchange contracts is determined using forward exchange market rates at the balance sheet date.
At the balance sheet date, the fair values of forward contracts with banks were as follows:
| (in TEUR) | 2007 | 2006 |
| Forward contracts with positive fair values | 18,029 | 15,039 |
| Forward contracts with negative fair values | (6,901) | (3,774) |
| 11,128 | 11,265 |
Fair values forward contracts (Download size 20 KB)
The remaining terms of the forward foreign exchange contracts are as follows:
| (in TEUR) | not exceeding 1 year | more than 1 year | Total 2007 | Total 2006 | |||
| US Dollars | 8,023 | (927) | 7,096 | 5,223 | |||
| Swiss Francs | 2,701 | 376 | 3,077 | 1,707 | |||
| Singapore Dollars | 1,641 | 0 | 1,641 | 2,826 | |||
| Euros | 133 | 923 | 1,056 | 712 | |||
| Other currencies | (402) | (1,340) | (1,742) | 797 | |||
| 12,096 | (968) | 11,128 | 11,265 | ||||
Terms forward contracts (Download size 21 KB)
The fair value of the interest swaps presenting a total negative fair value as of end of 2007 was TEUR 7,737 (TEUR 2,647 as of end of 2006 being a positive fair value).
Cash and cash equivalents, current and non-current financial assets
The carrying amount of cash and other financial assets approximates the fair value due to the relatively short-term maturity of these financial instruments.
Non-current and current securities
The fair values of publicly traded instruments are based on quoted market prices. For all other instruments for which there are no quoted market prices, a reasonable estimate of fair value has been calculated based on the expected cash flows or the underlying net asset base for each investment. Non-current securities of the Group are classified as 'available for sale' and are valued at their quoted market price at the balance sheet date.
Receivables and payables
The historical carrying amounts of receivables and payables which are all subject to normal trade credit terms correspond basically to their fair values.
Short-term borrowings
The carrying amount approximates the fair value because of the short period to maturity of those instruments.
Long-term borrowings
The fair value of the long-term debts is based on the current interest rates available for debt with the same maturity profile. The fair value of non-current borrowings and other payables with variable interest rates approximates their carrying amounts.
The risks of the changes in fair value have been hedged by interest rate swaps. The Management believes that the exposure to interest rate risk of the remaining financial assets and liabilities is negligible.
IAS 39 Reserve
The table below shows the movements in the IAS 39 reserve in equity:
| Unrealized | Unrealized | Unrealized | |||
| gain (loss) | gain (loss) | gain (loss) | |||
| on hedging | on | total | |||
| (in TEUR) | activities | securities | IAS 39 reserve | ||
| Balance as at January 1, 2006 | (3,834) | 662 | (3,172) | ||
| Gains and losses from changes in fair value | (104) | (150) | (254) | ||
| Deferred income taxes thereon | 26 | 37 | 63 | ||
| Transfers to income statement | 5,557 | 280 | 5,837 | ||
| Deferred income taxes thereon | (1,723) | (78) | (1,801) | ||
| Balance as at December 31, 2006 | (78) | 751 | 673 | ||
| Gains and losses from changes in fair value | 0 | (285) | (285) | ||
| Deferred income taxes thereon | 0 | 50 | 50 | ||
| Transfers to income statement | 104 | 169 | 273 | ||
| Deferred income taxes thereon | (26) | (41) | (67) | ||
| Balance as at December 31, 2007 | 0 | 644 | 644 |
Ias 39 reserve (Download size 18 KB)
The net gains and losses for each category of financial instrument are as follows:
2007
| (in TEUR) | Held for trading | Held for trading | Available for sale | |||
| Derivatives | embedded Derivatives | Securities | ||||
| Changes in fair values recognized in profit or loss | (5,227) | 5,537 | (169) | |||
| Changes in fair values recognized in equity | 0 | 0 | (285) | |||
| Recycling out of equity | 0 | 0 | 169 | |||
| Net gains/(losses) | (5,227) | 5,537 | (285) |
Net gains financial instruments (Download size 18 KB)
2006
| (in TEUR) | Held for trading | Held for trading | Available for sale | |||
| Derivatives | embedded Derivatives | Securities | ||||
| Changes in fair values recognized in profit or loss | 4,594 | (9,063) | (280) | |||
| Changes in fair values recognized in equity | 0 | 0 | (150) | |||
| Recycling out of equity | 6,413 | 0 | 280 | |||
| Net gains/(losses) | 11,007 | (9,063) | (150) |
Net gains financial instruments-py (Download size 18 KB)